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[At-Large] Registrars exploit the lack of ICANN contract enforcement



  Question 
  What is Register.com's Domain Hold service and how
much does it cost?
 
  Answer 
  Domain Hold is a service that enables you to
exclusively reserve domain name(s) for 4
days-preventing registration by others during that
period. If you decide to register the domain name
during the hold period, you will only be able to
register the domain name through Register.com. 

The Domain Hold service is free, however you will be
charged the regular fee for registration when you
choose to register the domain name.  Please visit our
Pricing page for current terms and pricing.


How does Register.com?s Domain Hold service work?
 
  Answer 
  Once you have indicated that you would like to place
a domain name on hold, Register.com will hold the
domain name on reserve  so that you, alone, can
register it within the 4 day hold period.

Register.com will place the domain name in a special
account and you will be emailed instructions and a
link explaining how to proceed with your registration
and transfer the domain name to your own account.

If you do not register the domain name within the 4
day hold period, the domain name will again be
available for registration on a first come, first
served basis.

Question 
  Domain Hold - Why does the  WHOIS database show
Register.com as the Registrant of the domain name I
requested be placed on hold?
 
  Answer 
  Register.com is listed as the Registrant of the
domain name you requested be placed on hold to enable
you, alone, to register the domain name you are
interested in during the 4 day hold period. 

If you have not registered the domain name during the
4 day hold period, on day 5 it will again be available
for registration on a first come, first served basis.
If you choose to proceed with the registration within
the 4 day hold period, the domain name will be
transferred to you.

[My question]

Why isn't this a violation of RAA 3.7.4:
3.7.4 Registrar shall not activate any Registered Name
unless and until it is satisfied that it has received
a reasonable assurance of payment of its registration
fee. For this purpose, a charge to a credit card,
general commercial terms extended to creditworthy
customers, or other mechanism providing a similar
level of assurance of payment shall be sufficient,
provided that the obligation to pay becomes final and
non-revocable by the Registered Name Holder upon
activation of the registration.
 
 



http://help.register.com/cgi-bin/register_help.cfg/php/enduser/std_adp.php?p_faqid=2796&p_created=1185549188&p_sid=*Nq5PxZi&p_accessibility=0&p_lva=&p_sp=cF9zcmNoPSZwX3NvcnRfYnk9JnBfZ3JpZHNvcnQ9JnBfcm93X2NudD01NDImcF9wcm9kcz0mcF9jYXRzPSZwX3B2PSZwX2N2PSZwX3NlYXJjaF90eXBlPWFuc3dlcnMuc2VhcmNoX25sJnBfcGFnZT0x&p_li=&p_topview=1

           



      
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